XML 30 R13.htm IDEA: XBRL DOCUMENT

Condensed Consolidating Information

6 Months Ended

Jun. 30, 2011

Note 9. Condensed Consolidating Information

Certain 100%-owned subsidiaries of SDI have fully and unconditionally guaranteed all of the indebtedness relating to the issuance of the company’s senior notes due 2012, 2014, 2015, 2016, and 2020. Following are the company’s condensed consolidating financial statements, including the guarantors, which present the financial position, results of operations and cash flows of (i) SDI (in each case, reflecting investments in its consolidated subsidiaries under the equity method of accounting), (ii) the guarantor subsidiaries of SDI, (iii) the non-guarantor subsidiaries of SDI, and (iv) the eliminations necessary to arrive at the information for the company on a consolidated basis. The following statements should be read in conjunction with the accompanying consolidated financial statements and the company’s Annual Report on Form 10-K for the year ended December 31, 2010.

Condensed Consolidating Balance Sheets (in thousands)

						Combined			Consolidating			Total
As of June 30, 2011	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	264,121		$	9,170	$	4,400		$	—		$	277,691
Accounts receivable, net	355,583			781,506		13,116			(300,804		)	849,401
Inventories	604,523			523,362		73,151			(5,842		)	1,195,194
Other current assets	74,566			7,979		2,352			(33,324		)	51,573
Total current assets	1,298,793			1,322,017		93,019			(339,970		)	2,373,859
Property, plant and equiment, net	1,081,980			668,009		429,255			(2,930		)	2,176,314
Intangible assets, net	—			469,719		—			—			469,719
Goodwill	—			748,383		—			—			748,383
Other assets, including investments in subs	2,809,475			36,405		8,095			(2,721,797		)	132,178
Total assets	$	5,190,248		$	3,244,533	$	530,369		$	(3,064,697	)	$	5,900,453

Accounts payable	$	147,054		$	313,747	$	32,369		$	(37,311	)	$	455,859
Accrued expenses	136,489			91,125		8,966			(23,145		)	213,435
Current maturities of long-term debt	432			300		36,002			(35,182		)	1,552
Total current liabilities	283,975			405,172		77,337			(95,638		)	670,846
Long-term debt	2,344,178			—		187,123			(153,508		)	2,377,793
Other liabilities	286,196			2,179,199		29,228			(1,954,297		)	540,326

Redeemable noncontrolling interest	—			—		54,294			—			54,294

Common stock	636			33,896		16,121			(50,017		)	636
Treasury stock	(725,849		)	—		—			—			(725,849		)
Additional paid-in-capital	1,019,061			117,737		262,452			(380,189		)	1,019,061
Retained earnings	1,982,051			508,529		(77,481		)	(431,048		)	1,982,051
Total Steel Dynamics, Inc. equity	2,275,899			660,162		201,092			(861,254		)	2,275,899
Noncontrolling interests	—			—		(18,705		)	—			(18,705		)
Total equity	2,275,899			660,162		182,387			(861,254		)	2,257,194
Total liabilities and equity	$	5,190,248		$	3,244,533	$	530,369		$	(3,064,697	)	$	5,900,453

Condensed Consolidating Balance Sheets (in thousands)

						Combined			Consolidating			Total
As of December 31, 2010	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	173,563		$	10,628	$	2,322		$	—		$	186,513
Accounts receivable, net	283,883			614,412		7,282			(283,388		)	622,189
Inventories	548,726			487,298		84,183			(6,144		)	1,114,063
Other current assets	96,040			9,757		3,444			(32,003		)	77,238
Total current assets	1,102,212			1,122,095		97,231			(321,535		)	2,000,003
Property, plant and equiment, net	1,110,350			684,118		421,897			(3,032		)	2,213,333
Intangible assets, net	—			489,240		—			—			489,240
Goodwill	—			751,675		—			—			751,675
Other assets, including investments in subs	2,788,097			36,617		7,601			(2,696,632		)	135,683
Total assets	$	5,000,659		$	3,083,745	$	526,729		$	(3,021,199	)	$	5,589,934

Accounts payable	$	127,246		$	227,823	$	26,015		$	(32,483	)	$	348,601
Accrued expenses	123,498			102,114		8,497			(30,317		)	203,792
Current maturities of long-term debt	7,554			325		34,604			(33,559		)	8,924
Total current liabilities	258,298			330,262		69,116			(96,359		)	561,317
Long-term debt	2,344,399			—		168,278			(134,780		)	2,377,897
Other liabilities	305,092			2,158,725		27,072			(1,971,298		)	519,591

Redeemable noncontrolling interest	—			—		54,294			—			54,294

Common stock	633			33,901		16,121			(50,022		)	633
Treasury stock	(727,624		)	—		—			—			(727,624		)
Additional paid-in-capital	998,728			117,737		256,905			(374,642		)	998,728
Retained earnings	1,821,133			443,120		(49,022		)	(394,098		)	1,821,133
Total Steel Dynamics, Inc. equity	2,092,870			594,758		224,004			(818,762		)	2,092,870
Noncontrolling interests	—			—		(16,035		)	—			(16,035		)
Total equity	2,092,870			594,758		207,969			(818,762		)	2,076,835
Total liabilities and equity	$	5,000,659		$	3,083,745	$	526,729		$	(3,021,199	)	$	5,589,934

Condensed Consolidating Statements of Operations (in thousands)

For the three months ended,							Combined			Consolidating			Total
June 30, 2011	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	952,487		$	2,344,958		$	50,943		$	(1,268,657	)	$	2,079,731
Costs of goods sold	754,436			2,239,226			66,156			(1,256,473		)	1,803,345
Gross profit (loss)	198,051			105,732			(15,213		)	(12,184		)	276,386
Selling, general and administrative	35,528			54,094			1,948			(3,403		)	88,167
Operating income (loss)	162,523			51,638			(17,161		)	(8,781		)	188,219
Interest expense, net of capitalized interest	26,125			18,264			2,413			(1,990		)	44,812
Other (income) expense, net	(3,704		)	(3,089		)	(968		)	2,016			(5,745		)
Income (loss) before income taxes and equity in net income of subsidiaries	140,102			36,463			(18,606		)	(8,807		)	149,152
Income taxes (benefit)	42,811			13,768			(56		)	(3,197		)	53,326
	97,291			22,695			(18,550		)	(5,610		)	95,826
Equity in net income of subsidiaries	1,419			—			—			(1,419		)	—
Net loss attributable to noncontrolling interests	—			—			2,884			—			2,884
Net income (loss) attributable to Steel Dynamics, Inc.	$	98,710		$	22,695		$	(15,666	)	$	(7,029	)	$	98,710

For the three months ended,							Combined			Consolidating			Total
June 30, 2010	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	726,120		$	1,831,842		$	35,359		$	(960,522	)	$	1,632,799
Costs of goods sold	607,268			1,740,778			44,291			(951,522		)	1,440,815
Gross profit (loss)	118,852			91,064			(8,932		)	(9,000		)	191,984
Selling, general and administrative	24,490			50,479			2,247			(1,867		)	75,349
Operating income (loss)	94,362			40,585			(11,179		)	(7,133		)	116,635
Interest expense, net of capitalized interest	25,038			17,677			3,424			(2,691		)	43,448
Other (income) expense, net	(4,482		)	(2,057		)	248			2,770			(3,521		)
Income (loss) before income taxes and equity in net income of subsidiaries	73,806			24,965			(14,851		)	(7,212		)	76,708
Income taxes (benefit)	27,866			9,465			(5,552		)	(1,868		)	29,911
	45,940			15,500			(9,299		)	(5,344		)	46,797
Equity in net income of subsidiaries	3,267			—			—			(3,267		)	—
Net loss attributable to noncontrolling interests	—			—			2,410			—			2,410
Net income (loss) attributable to Steel Dynamics, Inc.	$	49,207		$	15,500		$	(6,889	)	$	(8,611	)	$	49,207

Condensed Consolidating Statements of Operations (in thousands)

For the six months ended,							Combined			Consolidating			Total
June 30, 2011	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	1,865,304		$	4,646,505		$	98,465		$	(2,514,574	)	$	4,095,700
Costs of goods sold	1,483,977			4,404,604			123,751			(2,488,772		)	3,523,560
Gross profit (loss)	381,327			241,901			(25,286		)	(25,802		)	572,140
Selling, general and administrative	72,192			109,987			4,070			(7,654		)	178,595
Operating income (loss)	309,135			131,914			(29,356		)	(18,148		)	393,545
Interest expense, net of capitalized interest	51,821			35,526			4,727			(3,916		)	88,158
Other (income) expense, net	(6,883		)	(5,764		)	(1,686		)	4,021			(10,312		)
Income (loss) before income taxes and equity in net income of subsidiaries	264,197			102,152			(32,397		)	(18,253		)	315,699
Income taxes (benefit)	83,740			38,672			(13		)	(6,756		)	115,643
	180,457			63,480			(32,384		)	(11,497		)	200,056
Equity in net income of subsidiaries	24,156			—			—			(24,156		)	—
Net loss attributable to noncontrolling interests	—			—			4,557			—			4,557
Net income (loss) attributable to Steel Dynamics, Inc.	$	204,613		$	63,480		$	(27,827	)	$	(35,653	)	$	204,613

For the six months ended,							Combined			Consolidating			Total
June 30, 2010	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	1,453,153		$	3,564,273		$	66,769		$	(1,895,606	)	$	3,188,589
Costs of goods sold	1,215,250			3,363,533			83,747			(1,876,407		)	2,786,123
Gross profit (loss)	237,903			200,740			(16,978		)	(19,199		)	402,466
Selling, general and administrative	53,381			100,526			4,594			(4,967		)	153,534
Operating income (loss)	184,522			100,214			(21,572		)	(14,232		)	248,932
Interest expense, net of capitalized interest	46,885			32,858			5,535			(4,315		)	80,963
Other (income) expense, net	(7,266		)	(4,907		)	538			5,033			(6,602		)
Income (loss) before income taxes and equity in net income of subsidiaries	144,903			72,263			(27,645		)	(14,950		)	174,571
Income taxes (benefit)	51,852			27,038			(10,348		)	(4,157		)	64,385
	93,051			45,225			(17,297		)	(10,793		)	110,186
Equity in net income of subsidiaries	21,125			—			—			(21,125		)	—
Net loss attributable to noncontrolling interests	—			—			3,990			—			3,990
Net income (loss) attributable to Steel Dynamics, Inc.	$	114,176		$	45,225		$	(13,307	)	$	(31,918	)	$	114,176

Condensed Consolidating Statements of Cash Flows (in thousands)

For the six months ended,							Combined			Consolidating			Total
June 30, 2011	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	158,937		$	34,056		$	(14,392	)	$	(8,667	)	$	169,934
Net cash used in investing activities	(14,734		)	(25,017		)	(12,919		)	—			(52,670		)
Net cash provided by (used in) financing activities	(53,645		)	(10,497		)	29,389			8,667			(26,086		)
Increase (decrease) in cash and equivalents	90,558			(1,458		)	2,078			—			91,178
Cash and equivalents at beginning of period	173,563			10,628			2,322			—			186,513
Cash and equivalents at end of period	$	264,121		$	9,170		$	4,400		$	—		$	277,691

For the six months ended,							Combined			Consolidating			Total
June 30, 2010	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	168,393		$	(17,285	)	$	(58,376	)	$	(639	)	$	92,093
Net cash used in investing activities	(103,052		)	(16,823		)	(31,884		)	81,596			(70,163		)
Net cash provided by financing activities	115,060			33,134			93,418			(80,957		)	160,655
Increase (decrease) in cash and equivalents	180,401			(974		)	3,158			—			182,585
Cash and equivalents at beginning of period	430			6,363			2,215			—			9,008
Cash and equivalents at end of period	$	180,831		$	5,389		$	5,373		$	—		$	191,593